Portugal proposes increasing subsidies to cover up to 80% of the cost of electric cars.

Portugal aims to make electric cars accessible to more families. While the purchase price remains a barrier for many drivers, the government is preparing a subsidy program specifically for households with fewer resources. This proposal comes as Portugal already has a significant advantage over Spain in adopting this technology.

The measure was announced by Maria da Graça Carvalho, Minister of Environment and Energy, during the debate on the 2027 budget. The plan involves covering up to 80% of the eligible cost of purchasing an electric car, with the goal of assisting around 20,000 vehicles. It would not be a universal subsidy; instead, it would target the most economically vulnerable families.

The context is particularly interesting when viewed from Spain. From January to September 2026, electric cars accounted for 29% of new passenger car registrations in Portugal, compared to 11.02% in Spain. In other words, Portugal’s share is approximately 2.6 times higher than ours. Almost triple, though it should be noted that we are referring to market penetration, not the absolute number of cars sold.

Portugal therefore does not start with a marginal presence of electric cars. The new proposal aims to expand access to those who face greater difficulties in purchasing them. Additionally, since this is a program still pending development, it cannot yet offer the advantage that the country already has over Spain.

Substantial support, but with conditions

According to the details released, the program sets a limit of 15,000 euros before VAT for the car purchase cost. This condition would significantly restrict the available options and focus incentives on more affordable models. The final list of cars eligible for subsidies will depend on the rules published and the prices of the qualifying versions.

Based on that subsidizable amount, an 80% coverage would equate to 12,000 euros in assistance, leaving 3,000 euros remaining before taxes. However, this figure should not be confused with the final purchase price, as the treatment of VAT and the final terms of the program still need to be clarified. Announcing electric cars at that price would be ahead of what is actually known.

The published information also includes a 1,000 euro improvement linked to the scrapping of a combustion engine car, with a reference to a limit of 16,000 euros. The final wording must clarify how this increase is applied and its relationship to the subsidized percentage. This is one of the aspects that need to be resolved before buyers can calculate how much they would receive.

The plan also includes up to 1,000 euros, tax-free, for installing a charger. This additional measure acknowledges that making purchases easier is only part of the process. Having an appropriate charging point also affects the convenience and cost of using an electric car.

In addition to this specific program, there will be a 50 million euro allocation in 2027 for general incentives to purchase electric cars. The government intends to continue providing support to the general public under rules similar to those before, although the amounts per category and the eligibility criteria still need to be finalized.